Emcure Pharmaceuticals Limited is gearing up to launch its Initial Public Offering (IPO) tomorrow, July 3, 2024.
With the subscription window set to open for three days until July 5, 2024, Emcure aims to raise capital by offering 1,97,72,381 equity shares priced in the range of ₹960 to ₹1008 per share. This includes an Offer for Sale of 1,14,28,839 shares.
The issue is being managed by a consortium of prominent investment banks, including Kotak Mahindra Capital Company Limited, Axis Capital Limited, Jefferies India Private Limited, and J.P. Morgan India Private Limited.
The registrar for the IPO is Link Intime India Private Limited, while AXIS Bank and HDFC Bank serve as the sponsor banks.
Emcure Pharmaceuticals Overview
Emcure Pharmaceuticals is a leader in the development, manufacturing, and global marketing of a broad range of pharmaceutical products across major therapeutic areas.
The company’s strong emphasis on research and development (R&D) has resulted in a diverse product portfolio that includes orals, injectables, and biotherapeutics. Emcure has a significant market presence in over 70 countries, with a notable footprint in India, Europe, and Canada.
Market Position and Growth
Emcure Pharmaceuticals is ranked as the 13th largest pharmaceutical company in India by Domestic Sales for the MAT Financial Year 2024.
It holds the 4th largest market share in Covered Markets in terms of Domestic Sales for the same period. The company is the market leader in gynecology and HIV antivirals in India by Domestic Sales (Source: CRISIL Report).
For the Financial Year 2024, domestic sales contributed 48.28% to Emcure’s total revenue, growing at a CAGR of 9.73% between MAT Financial Year 2020 and MAT Financial Year 2024.
This growth outpaced the overall Indian pharmaceutical market (IPM), which grew at a CAGR of 8.19% during the same period (Source: CRISIL Report).
International Presence and R&D Capabilities
Emcure’s international sales accounted for 51.72% of its total revenue for the Financial Year 2024, with products sold in over 70 countries.
The company operates five R&D facilities in India and boasts a team of 548 scientists as of March 31, 2024. Emcure has filed over 1,800 dossiers globally and has been granted 220 patents.
Manufacturing Capabilities
Emcure Pharmaceuticals operates 13 manufacturing facilities across India, producing a wide variety of pharmaceutical and biopharmaceutical products.
The company focuses on vertical integration for cost-effectiveness and quality control, with significant investments in both domestic and international operations over the past three financial years.
Financial Performance
Emcure Pharmaceuticals has demonstrated consistent growth and profitability. For the financial year ended March 31, 2024, the company reported revenue from operations of ₹6,658.25 crore and a profit of ₹527.58 crore.
The Basic and Diluted Earnings per Share (EPS) for the same period was ₹27.54. This performance underscores Emcure’s resilience and ability to adapt to market dynamics, positioning it strongly ahead of its IPO.
IPO Details
Qualified Institutional Investors (QII) can place bids for up to 1,96,63,476 shares, while Non-Institutional Investors (NII) can bid for a maximum of 98,31,738 shares.
The share allotment date is set for July 8, 2024, with the IPO expected to be listed on stock exchanges on July 10, 2024.
The IPO presents investors with an opportunity to invest in a well-established pharmaceutical company with a diverse product portfolio and a strong presence in both domestic and international markets.
